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- Israeli scale creator Shekel Brainweigh (SBW) has released an update regarding the COVID-19 pandemic’s impact on business operations
- The company’s total revenues and cash balance for the year so far are both lower than they were in 2019
- Shekel applied for a COVID-19 relief loan from the Israeli Government, but did not receive approval
- Subsequently, the company has extended the unpaid leave scheme and salary reductions for some employees until May 31
- Shekel Brainweigh shares are trading flat at market open, selling for seven cents each
Israeli scale creator Shekel Brainweigh (SBW) has released an update regarding the COVID-19 pandemic’s impact on business operations.
The company specialises in developing scale and weighing technology for a variety of industries, including retail and healthcare.
Shekel reported that its revenues and cash balance for the year so far are both lower than they were in 2019. Specifically, the company’s total revenues for January to April 2020 were approximately $6.91 million in unaudited figures. In comparison, Shekel reported total audited revenues of approximately $7.41 million for the same period in 2019.
On December 31, 2019, the company had a cash balance of approximately $4.29 million. However, the COVID-19 health crisis started seriously impacting people, companies, industries, and economies not long after. As of April 30, 2020, Shekel’s cash balance has decreased down to approximately $3.41 million.
On April 16, 2020, the company announced that it had applied for a COVID-19 relief loan from the Israeli Government. The Government of Israel created an economic support package for Israeli companies, to assist during the crisis.
However, Israel’s Government did not approve Shekel’s loan application. The Government claimed that it did so on the grounds that the company recorded a loss in its 2019 profit and loss statements. Thus far, Shekel says it has not received any official support from the Israeli Government with regards to COVID-19.
As a result of the loan denial, the company has had to extend various cost-cutting measures. In particular, it has extended the unpaid leave scheme for some of its employees until May 31, 2020. The reduction of salaries will also continue until this date.
Shekel has stated that the reduction of salaries does not impact its employees in the company’s production lines.
Shekel Brainweigh shares are trading flat at market open, selling for seven cents each at 10:31 am AEST.
